Real estate transaction method

Abstract

Real estate transaction methods are disclosed to allow holders of tenancy in common (TIC) property interests to convert such interests to real estate investment trusts (REIT) holdings. Such methods comprise a conversion of TIC property interests to REIT status through an UPREIT process, a DOWNREIT process and a process to accommodate a 1031 Exchange whereby at some point in the future a TIC interest is converted to REIT holdings through either an UPREIT or DOWNREIT transfer.

1 . A method for facilitating the liquidity of a TIC property interest comprising the steps:
 a. creating a REIT;   b. creating an operating partnership associated with the REIT;   c. engaging in a transaction whereby cash from the REIT is exchanged for a partnership interest in the operating partnership;   d. providing a TIC property interest;   e. exchanging the TIC interest for at least one limited operating partnership unit of the operating partnership; and   e. converting the limited operating partnership unit obtained from the exchange with the TIC interest for shares of the REIT provided in step (a).   
     
     
         2 . The method of  claim 1  wherein in step (a), said newly formed REIT is formed by means of an initial public offering. 
     
     
         3 . The method of  claim 1  wherein in steps (d) and (e), said TIC interest is at least one of up to 35 TIC interests in said real property. 
     
     
         4 . The method of  claim 3  wherein in steps (d) and (e), said TIC interest is at least one of up to 30 TIC interests in said real property 
     
     
         5 . The method of  claim 3  wherein in steps (d) and (e), said TIC interest is at least one of up to 25 TIC interests in said real property. 
     
     
         6 . The method of  claim 3  wherein in steps (d) and (e), said TIC interest is at least one of up to 20 TIC interests in said real property. 
     
     
         7 . The method of  claim 3  wherein in steps (d) and (e), said TIC interest is at least one of up to 15 TIC interests in said real property. 
     
     
         8 . The method of  claim 3  wherein in steps (d) and (e), said TIC interest is at least one of up to 10 TIC interests in said real property. 
     
     
         9 . A method for facilitating the liquidity of a TIC property interest comprising the steps:
 a. providing an existing REIT;   b. creating an operating partnership associated with the REIT;   c. engaging in a transaction whereby cash from the REIT is exchanged for a partnership interest in the operating partnership;   d. providing a TIC property interest;   e. exchanging the TIC interest for at least one limited operating partnership of the operating partnership; and   f. converting the limited operating partnership unit obtained from the exchange with the TIC interest for shares of the REIT provided in step (a).   
     
     
         10 . The method of  claim 9  wherein in steps (d) and (e), said TIC interest is at least one of up to 35 TIC interests in said real property. 
     
     
         11 . The method of  claim 9  wherein in steps (d) and (e), said TIC interest is at least one of up to 30 TIC interests in said real property 
     
     
         12 . The method of  claim 9  wherein in steps (d) and (e), said TIC interest is at least one of up to 25 TIC interests in said real property. 
     
     
         13 . The method of  claim 9  wherein in steps (d) and (e), said TIC interest is at least one of up to 20 TIC interests in said real property. 
     
     
         14 . The method of  claim 9  wherein in steps (d) and (e), said TIC interest is at least one of up to 15 TIC interests in said real property. 
     
     
         15 . The method of  claim 9  wherein in steps (d) and (e), said TIC interest is at least one of up to 10 TIC interests in said real property. 
     
     
         16 . A method of converting a TIC property interest to a liquidatable REIT share comprising the steps:
 a. providing a first real estate interest held as a TIC;   b. exchanging said property provided in step (a) pursuant to a 1031 Exchange;   c. acquiring said property exchanged in step (b) previously held as a TIC in step (a) by a REIT; and   d. providing shares of said REIT to at least one holder of the TIC interest of said real estate provided in step (a).   
     
     
         17 . The method of  claim 16  wherein said REIT shares provided to said TIC interest holder in step (d) are provided via an UPREIT-type transaction. 
     
     
         18 . The method of  claim 16  wherein said REIT shares provided to said TIC interest holder in step (d) are provided via a DOWNREIT-type transaction.